Asia Asset Finance Rights Issue 1:2 @ Rs. 1.60

[SrirangaVeteran]

http://www.cse.lk/cmt/upload_cse_announcements/7771405655478_.pdf

[kassTop contributor]

As per the below news it seems a new investor to be brought in through the rights issue.

http://www.randora.lk/index.php/markets/corporate-news-announcements/item/2927-asia-asset

I was holding small quantity thinking it would go up with the merger situation hoping the investors will buy existing shares, seems things have gone other way. What are your opinion on this friends? Isn't it time we should start talking about stocks again   

[slstockVeteran]

Their financial strength is better than SFS etc for small priced shares

But am not sure this is a pre arranged deal for someone to subscribe to rights ( if ACAP wants to sell them) . I am not sure just a possibility to think about.

Also this right issues jacks up AAF to 1 requirement of CB to be in CAT A .

[kassTop contributor]

If some new investor needs to become a majority shareholder in the above case they will have to buy the rights from existing shareholders am I correct?

[slstockVeteran]

Technically yes. If you recall in ALUF right issue, the top holder sold rights .

If some new investor needs to become a majority shareholder in the above case they will have to buy the rights from existing shareholders am I correct?

[kassTop contributor]

Technically yes. If you recall in ALUF right issue, the top holder sold rights .

If some new investor needs to become a majority shareholder in the above case they will have to buy the rights from existing shareholders am I correct?

Ok then do they have to go for a mandatory offer?

[slstockVeteran]

Hmm. Challenging but interesting questions though we are still on a hypothetical scenario. ( we don;t know what is in store)

If at any point a new buyer ( or existing) exceeds 30% stake they will have to go for a mandatory offer I believe. As it is 1 for 2 share right issue , even if ACAP sell all their rights will the effective total be 30% ? Don;t know didn't calculate.
Also I am not sure whether this ever happened in CSE history after a rights issues though.


. I beleive if someone goes for over 30%

Technically yes. If you recall in ALUF right issue, the top holder sold rights .

If some new investor needs to become a majority shareholder in the above case they will have to buy the rights from existing shareholders am I correct?

Ok then do they have to go for a mandatory offer?

[Gaudente]

this piece of junk always failed to pay any dividend and now offers new shares at a laughable discount to market price , significantly above book value (1.36) and almost 15 times its 0.11 EPS.
I can't see any reason to apply.  

[SrirangaVeteran]

ASIA ASSET FINANCE PLC
Company ID: - AAF
Date of Initial Announcement: - 18.Jul.2014
Proportion: - One (01) new ordinary share for every two (02) existing ordinary shares held
Issue Price: - Rs. 1.60/-
Qty Offered: - 279,735,944
General Meeting / Provisional Allotment: - 17.Sep.2014
Date EX: - 18.Sep.2014
Dispatch of Provisional Letter of Allotment: - 22.Sep.2014
Rights Trading Commences on: - 26.Sep.2014
Renunciation: - 03.Oct.2014
Last Date of Acceptance & Payment: - 06.Oct.2014
Share Transfer Book Open

[sereneTop contributor]